Q&A with Shakila
Must Read Conveyancing Facts
Conveyancing is something that all first-time buyers, whether investors or home seekers, will need to come to grips with after their first purchase – but it’s not always well understood.
Interview with Shakila Maclean of All Hours Property – First Property Buyer Magazine.
Now that you’ve bought!
When does the Cooling off period end?
You have 3 clear business days starting from the day after you sign the contract (only if you have bought outside of auction conditions).
If I pay my deposit and I don’t get my finance do I get my deposit back?
Yes as long as the offer was subject to finance and you have responded within the time you were given.
When should I see a Conveyancer?
Before entering into a contract of sale.
When buying a property, what does the conveyancing process involve?
- Examining the contract and other sale documents
- Searching the title to verify its status
- Obtaining rate and planning certificates from the relevant authoritie
- Dealing with the requirements of any lender
- Adjusting council and water rates and any other charges
- Attending settlement
- Arranging for the payment of Stamp Duty on the transfer
- Lodging the transfer documents with the Land Titles Office
- Notifying the relevant authorities of the change in ownership and sending cheques for any unpaid rates
Things to do before you sign
Under the Sale of land Act 1962, a disclosure document known as a “Vendor Statement or Section 32 statement” must be given to a purchaser before a contract is signed. This statement must be signed by the vendor before it is signed by the purchaser.
The statement must contain certain information about the property being sold such as, information regarding the location of easements, particulars of any building approvals given in the last seven years, and details of rates and charges that affect the property.
The estate agent will discuss with the vendor any prospective offers you make to purchase the property and, when there is a mutual agreement for the terms of a sale, the agent will prepare a “contract note”. This contract note will contain all of the relevant information relating to the sale.
Our staff are happy to discuss the contract note and section 32 statement contents with you before you sign anything. There are many other things that should be done or considered before a contract is signed, such as:
Measuring the property;
Determining the availability of services;
Examining the property for illegal structures;
Ensuring that your contract is conditional upon finance approval if necessary.
After all the parties sign the contract note and section 32, it will be forwarded to us, at which time we can proceed with the conveyancing process.
Once you have signed the contract note, it is recommended that you take out insurance coverage for any buildings on the property.
If the deposit is due to be paid, you should do so whether or not your finance has been approved.
Finance and your lender
If your contract is conditional upon the approval of finance, you must ensure you make immediate application for your loan and do anything reasonably asked of you by your lender to secure approval.
It is the purchaser’s responsibility to advise the vendor if finance has or has not been approved or has been declined, by the approval date.
Therefore it is essential that you contact us by the approval date specified in your contract, regardless of whether or not your finance has been approved.
If you do not advise the vendor that finance has not been approved, the usual finance clause will allow the contract to become unconditional. It is critical that you ensure that we are made aware of any delay or problem with finance approval.
Once you sign a contract note for the purchase of a property, you have what is known as an “insurable interest” in the property. Naturally, you will want to protect this interest.
A lender often requires the borrower to arrange insurance cover, noting the lenders full name as “an interested party” or “as mortgagee”. Failure to provide a certificate from the insurer with the lender noted as an interested party can lead to a delay in settlement.
Therefore, we recommend that you arrange building insurance as soon as a binding contract is signed.
Meanwhile . what are we doing?
We arrange for requisitions on the title to be sent to the vendor and examine the answers when they are received.
If finance is being obtained on the property, we make contact with your lender and provide details required by them so they are able to process the loan application and prepare mortgage documents when the loan is approved.
We will order a title search and property certificates from various legislative authorities. If any of these reveal a matter which conflicts with the information provided by the seller, or contains information that you should be made aware of, we will discuss this with you.
We will send you documents to be signed that will be required at settlement. As such it is important that you return these documents as soon as possible. If you are uncertain of how to sign or complete any document sent by us, you should contact our office for advice.
Before settlement, we will prepare a statement of adjustments. The Land and Water Rates and any other relevant charges are adjusted for on this statement to ensure sure that you are only paying the rates for the period you have owned the property.
We contact your lender and determine what funds they have available for settlement. If the available amount does not cover all necessary funds due at settlement, we will calculate the amount required from you and provide you with the details.
Any funds being provided by you will be required in the form of a Bank cheque and delivered to our office prior to the settlement date and time. If the property is settling locally, we can receive the cheque from you on the morning of settlement.
Prior to settlement, you should contact service providers to ensure services are transferred into your name as the new owner.
You must carry out a final inspection during the week leading up to settlement and advise us of the outcome of this inspection.
When do I do my final inspection?
7-10 days prior to settlement.
Settlement is the process where all the parties involved in the conveyancing process come together to complete the transaction.
The parties that usually attend a settlement are the purchaser’s conveyancer, the purchaser’s bank, the vendor’s conveyancer/solicitor and the vendor’s bank.
Settlement is arranged to take place at a time suitable to all parties involved.
Do I need to attend settlement?
Not at all.
We will notify you that your purchase has been completed, and notify the estate agent so that the keys can be released to you.
We will notify the local council and the water board of the change in ownership and send to them any cheques for rates payable.
If you have taken out finance to purchase the property then the lender will take the title and transfer documents to arrange for the registration of the transfer. The lender will hold the title until such time as the loan is repaid in full.
If you have purchased the property with cash, we will arrange the transfer. Once we receive the title in your name back from the titles office we will inform you.
Where do I get my keys from?
The estate agent.